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AggieDoc
Returning Member

Excess Social Security Tax Refund

I completed my taxes and filed.  I had two employers during the year and paid excess social security tax.  I also had a federal tax excess paid in my return.  When I received my federal return, it was only for the excess federal tax and not for the excess social security tax, although this amount was include in my TurboTax summary of taxes.  Do I submit to get this excess social security tax differently, will it come to me separately, please advise?  The prior discussions seem to suggest this was done automatically by TurboTax.

8 Replies
RobertG
Expert Alumni

Excess Social Security Tax Refund

If you look at your Form 1040, Schedule 3, you will see excess Social Security withheld on line 11.

 

This number flows through to your Form 1040 Line 13b, where it is treated as a tax payment.

 

Your refund includes your excess Social Security withheld.

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TaxOverpayment
Returning Member

Excess Social Security Tax Refund

Turbo Tax Online is not doing the actual calculation for excess social security tax payment. The software makes the comment that you "may have overpaid" but it never confirms or calculates the amount.  Additionally, the excess amount is not showing up on Schedule 3, line 11 nor is it showing up on Form 1040, line 18d. There have been discussion in the community space, but the problem still exists today.  What does TurboTax recommend.  

BillM223
Expert Alumni

Excess Social Security Tax Refund

@TaxOverpayment

 

"Turbo Tax Online is not doing the actual calculation for excess social security tax payment."

 

This is not correct.

 

TurboTax will calculate the excess Social Security tax withheld and add it to Schedule 3, when the IRS allows it.

 

The issue that has come up this year is that the taxpayer submitted multiple W-2s with the same EIN on them. This can be the result of a taxpayer working for a PEO, 

 

Normally, a PEO (Professional Employer Organization) handles the personnel as their own employees. Since that is the case, the IRS (correctly) considers that you have only one employer - your PEO.

 

In this case, the IRS will not accept the request to refund the excess SS tax through your tax return, and neither will TurboTax. In the past, the IRS has sent letters to taxpayers who claimed the refund of excess Social Security taxes on their return when the "two" employers had the same EIN; these letters told the taxpayers to go back to their employer(s) and get the refund from them.

 

The same thing happens when a company changes divisions internally and moves an employee from one to the other. If both divisions have the same EIN, then the IRS policy is that since this is really one employer, you must ask the employer for the refund.

 

This a change from prior years where TurboTax had a workaround for this second situation, but that workaround has been removed, based on IRS guidance.

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TaxOverpayment
Returning Member

Excess Social Security Tax Refund

I have 3 different EIN numbers for three W-2s.  They are all assigned to me within Turbo Tax and not my spouse.  I paid an excess of over $2000 in social security tax and it is not showing up on any of the forms in the places that you and I have both identified it should be.  Please let me know if I should look somewhere else within turbo tax.  I have even gone as far as looking at the Smart Worksheets where Turbotax shows you the calculations and background info and I am not seeing anything there either.  

 

If the calculation is being done, but the numbers is not showing in Schedule 3, please let me know another place to look.  I've seen others say they've experienced this same issue.  Has Turbo Tax made an update the to the online tool to ensure that the numbers are showing in the correct forms?  Are you able to run a mock situation on Turbotax with either 2 or 3 EINs and see if the numbers show up for you?    

DoninGA
Level 15

Excess Social Security Tax Refund


@TaxOverpayment wrote:

I have 3 different EIN numbers for three W-2s.  They are all assigned to me within Turbo Tax and not my spouse.  I paid an excess of over $2000 in social security tax and it is not showing up on any of the forms in the places that you and I have both identified it should be.  Please let me know if I should look somewhere else within turbo tax.  I have even gone as far as looking at the Smart Worksheets where Turbotax shows you the calculations and background info and I am not seeing anything there either.  

 

If the calculation is being done, but the numbers is not showing in Schedule 3, please let me know another place to look.  I've seen others say they've experienced this same issue.  Has Turbo Tax made an update the to the online tool to ensure that the numbers are showing in the correct forms?  Are you able to run a mock situation on Turbotax with either 2 or 3 EINs and see if the numbers show up for you?    


After entering the 3 W-2's did you get a TurboTax page telling you that you had excess SS taxes withheld and then another page showing you the amount of excess?

The following screenshots are from the Self-Employed online editions with two employers with separate EIN's.  The program correctly calculated the excess SS taxes paid and entered the excess on Schedule 3 Part II Line 11 and that amount flowed to the Form 1040 Line 18d

TTO Excess SS Taxes.JPG

 

TTO Excess SS Taxes 1.JPG

 

TTO Excess SS Taxes 2.JPG

 

TTO Excess SS Taxes 3.JPG

 

TaxOverpayment
Returning Member

Excess Social Security Tax Refund

I received the first page that stated "you may have paid too much...".  I did not receive the page after it.  And the numbers do not show in my Smart Worksheets nor in my 1040 form. 

 

Is there some condition written into the programming where something else that I may have entered in another part of my taxes is blocking TT from doing the calculation?  

DoninGA
Level 15

Excess Social Security Tax Refund


@TaxOverpayment wrote:

I received the first page that stated "you may have paid too much...".  I did not receive the page after it.  And the numbers do not show in my Smart Worksheets nor in my 1040 form. 

 

Is there some condition written into the programming where something else that I may have entered in another part of my taxes is blocking TT from doing the calculation?  


The only thing that would cause the excess SS taxes not being entered would be if two or more of the W-2's that were entered had the exact same EIN (Employer Identification Number).

Go back to the W-2 section and verify each W-2 entered has a unique EIN that is not shared with any other W-2 entered.

Also verify that the amount of SS taxes withheld in box 4 of the W-2 is correctly entered.

If all looks good then suggest you delete the W-2's and re-enter each one manually, if you have not already done so.

 

If all else fails then contact TurboTax support for assistance.

See this TurboTax support FAQ on how to contact Support - https://ttlc.intuit.com/questions/3401489

Or -

Use this website to contact TurboTax support during business hours - https://support.turbotax.intuit.com/contact/

TaxOverpayment
Returning Member

Excess Social Security Tax Refund

I deleted and manually retyped the info on all three of my W-2s, I still only received the screen that said "you may have paid too much...".  I will move forward with contacting a person with Turbo Tax Support.  

 

Thank you for your quick responses.  

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